Assume a company has only one service department and two operating departments (A and B). The service department’s budgeted and actual variable costs for the period were $80,000 and $88,000, respectively. The budgeted and actual units of service provided to the operating departments were as follows:
Budgeted Units of Service Actual Units of Service
Department A 16,000 16,700
Department B 24,000 26,600
Total 40,000 43,300
The service department’s variable costs that should be charged to Department A are closest to:
Multiple Choice
$32,517.
$33,400.
$33,000.
$29,561.